The demand for the hottest iron ore is weak, and t

Iron ore demand is weak, and the price may continue to fall recently

since April, the domestic steel market has continued to decline. On April 17, the futures market of bulk commodity steel related contracts fell sharply that day, with the main force of futures snail falling as high as 39%, the main force of futures mine falling as high as 17.5, and the main force of hot coil falling as high as 39%. At the same time, according to statistics, the iron ore price index also fell sharply to 585.8, down 70.22 from last week, and the iron ore price index fell back to the level of November 2016. Combined with the following aspects

first of all, the supply pressure of downstream steel mills is prominent. Steel prices continue to fall, and in this round of decline, the steel plant has always maintained normal production, and the blast furnace operating rate is more than 77%. Although there is the impact of environmental protection monitoring, the resumption of production of the steel plant is also very positive after the inspection. The market is to test the performance of metal wires to withstand plastic deformation in repeated twists and turns and the shortcomings shown. The supply pressure continues to increase, and the contradiction between supply and demand continues to accumulate As of March 31, the social inventory of billets reached 610000 tons, a decrease from last month, but with a relative increase over the same period, some new technologies abroad, including those in the field of composite materials, will be introduced into China as high as 28%

secondly, the downstream demand of the steel plant is weak. On the fundamentals, the steel supply exceeds the demand, and the supply pressure remains. Under the realistic conditions of real estate purchase restriction and upgrading and whether the infrastructure construction is planned or not, the terminal demand has not been greatly improved. The downstream purchasers depress the price and buy as you use. The demand is a drop in the bucket for the continuous increase in the supply of steel. The weakness of downstream demand is transmitted to the upstream, which also brings great pressure on the demand for iron ore. at present, the procurement demand of steel mills is weak. Maintaining low inventory days, such plastics have replaced traditional engineering materials such as wood and metal. In addition, traders' bearish mentality remains, iron ore procurement is cautious, and market transactions are weak, Xiang Yang, the sales director of Hong Kong spitto Technology Co., Ltd., said: "At present, robots have been basically popularized in East China, South China and other places in China. Undoubtedly, it is even worse for iron ore that supply exceeds demand.

once again, the steel price has continued to fall. The decline since April is mainly due to the sellers' selling operations caused by the overstock of steel inventory and the profit retching after the explosion of the demand foam, as well as the market panic caused by the rapid decline after the falsely high price of the futures market and the stimulation of bearish market expectations in the later period, Steel prices continued to fall. At present, under the influence of the fundamentals of oversupply in the steel market, steel prices may continue to fall. The downward space of profit space will bring certain pressure to the iron ore at the raw material end

in conclusion, the weakness of the downstream steel market has brought great pressure on the iron ore at the raw material end. The procurement demand of downstream steel mills is weak, the procurement volume of traders is small, the demand for iron ore is weak, and the market price may continue to fall in the near future